Rathdrum to require business licenses

The Rathdrum City Council added a business license requirement Wednesday for all existing and new businesses in the city.

The license will be free this year. Renewing it will be $15 every year, or a new license will cost $25 starting Jan. 1, 2024.

“The purpose behind presenting this code for adoption is we wanted to promote our local businesses,” said City Attorney Emily Smith. “We don’t have a comprehensive list of the businesses in Rathdrum. The Rathdrum Chamber of Commerce has a partial list, but they only include paying members.”

The license would create a database of emergency contacts, consumer protections and ensure city code compliance for new businesses.

“We’re trying to get people to be preemptive and proactive to come talk to us, before problems happen,” Smith said.

Business owners have run into circumstances where they opened a business to find out later they’ve made city code violations that prohibit their operations, often after the owner has invested in materials or supplies. The license would open a dialogue before money is spent that could keep a business in compliance.

“I would argue that we make it optional for home businesses and mandatory for conditional use permit home businesses,” said Councilman John Hodgkins.

Council members added an exception to the code for small home businesses that don’t require a conditional use permit to be exempt from the permit.

“How are we making things easier by inflicting more regulation on people?” Hodgkins said.

Business licenses can be a tool for business owners to show legitimacy through federal agencies that sometimes require proof of legitimacy.

“One of the primary functions of the government is to ensure that growth is responsible and managed appropriately,” said business owner Eileen Paul in public comment. “That's one of the functions that I think a business license would serve. This is a responsible business practice making sure that code violations aren’t beginning. Those are very difficult to contend with on the back end.”

There are no back penalties or consequences for not having a business license, but there can be a burden to businesses to reach compliance when they are found to be out of compliance.

The response has been generally positive from business owners and members of the chamber, Smith said.

At the request of council members, city staff promoted the public hearing for the license requirement, publishing the notice twice, adding it to the back of water bills and adding a page on the city’s website dedicated to frequently asked questions.

The code draft was also emailed to the Rathdrum Chamber of Commerce to distribute to business owners.

In response to the heavier-than-usual promotion, Smith received two written comments in opposition and many responses in favor or requesting information.

View the business license at online cdapress.com.